Did you know that logistics, an integral part of supply chain management, is a great opportunity for businesses to reduce their operational costs by 10% to 40%? According to A&A Logistics Provider, poor logistics planning and decision making can cause missed delivery deadlines, damaged goods and excessive expenditure. This dramatically spikes the operational costs in normal scenarios, cutting into profits and increasing the risk of losing clients. This only emphasizes the importance of logistics optimization as the utmost priority of a business.

Here are some of the most effective tips businesses can use for logistics and supply chain optimization.

Don't Start Without Proper Planning

Successful logistics management includes various checkpoints like the goods/products, distance from the storage facilities, availability of transportation, internal management of the organization, and last mile delivery of the product. Time and costs are other important parameters, proper planning of which can help businesses minimize logistics cost to maximize profits. Businesses that proceed with thoughtful and practical strategies and a contingency plan are able to achieve more in less time, says an expert at Key Software Systems.

Achieve Effective Warehouse Management

Warehousing is a critically important part of the business supply chain. Without proper warehouse management, effective logistics management cannot be achieved. Executing fool proof warehouse management allows organizations to get a competitive edge over the competition by improving inventory management, increasing flexibility, reducing labor expenses, while enhancing customer services. Use of courier management software for access to real time inventory data, such as the latest order, shipment, or receipt and any movement in between, allows businesses to provide timely tracking and delivery of goods.

Maximize Warehouse Storage Capacity

Start by understanding the flow and utilization of the current layout. Take into consideration the slotting philosophy, rack configuration, receiving, dispatch trends and inventory management, both during normal days and peak times. To maximize warehouse storage space, don't overlook the importance of using vertical storage columns. Effective optimization of warehouse space prevents businesses from any kind of delay they would have otherwise faced when the order is placed.

Determine the Best Delivery Route

Delivery routes and resources are the most important factor that should be considered for efficient transportation. Overestimation of these factors will add to the overall cost, whereas underestimation will cause delays in delivery, which can leave the customer unhappy and dissatisfied with your business. When trying to optimize logistics, it is really important that businesses restructure their current delivery routes to the most efficient route. This means that they should have minimum number of deliverymen and vehicles in transit, at any time.

According to an article by Automotive Fleet, the advent of the iOS and Android and courier software has been the biggest advances in routing that help drivers find routes via the most traffic-free roads. Make sure your business takes advantage of all this.